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Cash collateral DIP accounts
Generally, one cc account will work for what you are doing. However, there
are nuances which should be taken into consideration. For example, do the
liens switch priority depending on the type of property being converted
into cash? Do other lenders provide new goods which have liens that prime
the prepetition liens?
Also, I am very aggressive so take the following with a grain of salt.
The lender may have a UCC-1 against all AR, but there is the rule which
fixes its rights on the petition date. If your client is generating new AR
from services, then the UCC-1 won't attach to it. If the AR is generated
from the use of prepetition goods, then the UCC-1 *might* attach, but to
what extent is a question. If you want to learn more, the most aggressive
case on this topic is: In re Premier Golf Properties, LP, 477 BR 767 -
Bankr. Appellate Panel, 9th Circuit 2012.
Sincerely,
*Michael Avanesian *
*[image: avanesian-law-logo-modern]*
801 N. Brand Blvd., Suite #1130
Glendale, CA 91203
Tel: (818) 276-2477 | (818) 208-4550
*Confidentiality**: *This electronic transmission and its contents are
legally privileged and confidential information and intended solely for the
use of the addressee. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution,
copying or other use of this message and its contents is strictly
prohibited. If you have received this transmission in error, please reply
to us immediately and delete this message from your directory.
*IRS Circular 230 Disclosure:* To ensure compliance with requirements
imposed by the IRS, please be advised that any U.S. federal tax advice
contained in this communication (including any attachments) is not intended
or written to be used or relied upon, and cannot be used or relied upon,
for the purpose of (i) avoiding penalties under the Internal Revenue Code,
or (ii) promoting, marketing or recommending to another party any
transaction or matter addressed herein.
On Thu, Oct 13, 2016 at 8:03 PM, Holly Roark hollyroark22@gmail.com
[cdcbaa] wrote:
>
>
> What if there's no property? What if the 2 lenders have a UCC-1 lien on
> substantially all assets including cash, accounts, receivables...? When the
> debtor generates receivables (by hauling crude oil each day), is that not
> cash collateral or am I totally wrong about what cash collateral is? I
> thought cash collateral means they have a lien on cash and receivables, not
> only that they own a real property that is generating income.
>
> On Thursday, October 13, 2016, Michael Avanesian michael@avanesianlaw.com
> [cdcbaa] wrote:
>
>>
>>
>> One cash collateral account per property. When cash is deposited, it
>> should be deposited directly into the cc account.
>>
>> Once the cc motion is approved, it will be pursuant to a budget. The
>> funds should be spent in accordance with the budget. I have requested a
>> budget where senior secured lender is paid x, junior secured is paid y, and
>> the rest is paid to my client as a management fee. The "rest" would then be
>> moved from the cc account to the general account. All in the motion and in
>> the budget.
>>
>>
>> Sincerely,
>>
>> *Michael Avanesian *
>>
>> *[image: avanesian-law-logo-modern]*
>>
>> 801 N. Brand Blvd., Suite #1130
>> Glendale, CA 91203
>>
>> Tel: (818) 276-2477 | (818) 208-4550
>>
>> *Confidentiality**: *This electronic transmission and its contents are
>> legally privileged and confidential information and intended solely for the
>> use of the addressee. If the reader of this message is not the intended
>> recipient, you are hereby notified that any dissemination, distribution,
>> copying or other use of this message and its contents is strictly
>> prohibited. If you have received this transmission in error, please reply
>> to us immediately and delete this message from your directory.
>>
>>
>> *IRS Circular 230 Disclosure:* To ensure compliance with requirements
>> imposed by the IRS, please be advised that any U.S. federal tax advice
>> contained in this communication (including any attachments) is not intended
>> or written to be used or relied upon, and cannot be used or relied upon,
>> for the purpose of (i) avoiding penalties under the Internal Revenue Code,
>> or (ii) promoting, marketing or recommending to another party any
>> transaction or matter addressed herein.
>>
>>
>> On Thu, Oct 13, 2016 at 4:21 PM, Holly Roark hollyroark22@gmail.com
>> [cdcbaa] wrote:
>>
>>>
>>>
>>> Do you have the DIP deposit income directly into cash collateral DIP
>>> accounts and then move to operating once the cash collateral motion is
>>> approved? What if you have 2 secured lenders? Do you open 2 cash
>>> collateral accounts? What I'm asking is: as a practical matter, how does
>>> DIP manage the accounts as cash comes in? Should all deposits hit the
>>> senior secured lender DIP account first? What about after cash collateral
>>> motion is granted?
>>>
>>> --
>>> Holly Roark
>>> Certified Bankruptcy Specialist*
>>> *and Sports Lawyer*
>>> holly@roarklawoffices.com **primary email address**
>>> www.roarklawoffices.com
>>> *Central District of California & District of Idaho* - Consumer
>>> Bankruptcy Attorney
>>> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
>>> T (310) 553-2600; F (310) 553-2601
>>>
>>> *By State Bar of California Board of Legal Specialization
>>>
>>>
>>>
>>>
>>
>
> --
> Holly Roark
> Certified Bankruptcy Specialist*
> *and Sports Lawyer*
> holly@roarklawoffices.com **primary email address**
> www.roarklawoffices.com
> *Central District of California & District of Idaho* - Consumer
> Bankruptcy Attorney
> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
> T (310) 553-2600; F (310) 553-2601
>
> *By State Bar of California Board of Legal Specialization
>
>
>
>
>
Generally, one cc account will work for what you are doing. However, there are nuances which should be taken into consideration. For example, do the liens switch priority depending on the type of property being converted into cash? Do other lenders provide new goods which have liens that prime the prepetition liens?Also, I am very aggressive so take the following with a grain of salt.The lender may have a UCC-1 against all AR, but there is the rule which fixes its rights on the petition date. If your client is generating new AR from services, then the UCC-1 won't attach to it. If the AR is generated from the use of prepetition goods, then the UCC-1 mightattach, but to what extent is a question. If you want to learn more, the most aggressive case on this topic is:In re Premier Golf Properties, LP, 477 BR 767 - Bankr. Appellate Panel, 9th Circuit 2012.
The post was migrated from Yahoo.
What if there's no property? What if the 2 lenders have a UCC-1 lien on
substantially all assets including cash, accounts, receivables...? When the
debtor generates receivables (by hauling crude oil each day), is that not
cash collateral or am I totally wrong about what cash collateral is? I
thought cash collateral means they have a lien on cash and receivables, not
only that they own a real property that is generating income.
On Thursday, October 13, 2016, Michael Avanesian michael@avanesianlaw.com
[cdcbaa] wrote:
>
>
> One cash collateral account per property. When cash is deposited, it
> should be deposited directly into the cc account.
>
> Once the cc motion is approved, it will be pursuant to a budget. The funds
> should be spent in accordance with the budget. I have requested a budget
> where senior secured lender is paid x, junior secured is paid y, and the
> rest is paid to my client as a management fee. The "rest" would then be
> moved from the cc account to the general account. All in the motion and in
> the budget.
>
>
> Sincerely,
>
> *Michael Avanesian *
>
> *[image: avanesian-law-logo-modern]*
>
> 801 N. Brand Blvd., Suite #1130
> Glendale, CA 91203
>
> Tel: (818) 276-2477 | (818) 208-4550
>
> *Confidentiality**: *This electronic transmission and its contents are
> legally privileged and confidential information and intended solely for the
> use of the addressee. If the reader of this message is not the intended
> recipient, you are hereby notified that any dissemination, distribution,
> copying or other use of this message and its contents is strictly
> prohibited. If you have received this transmission in error, please reply
> to us immediately and delete this message from your directory.
>
>
> *IRS Circular 230 Disclosure:* To ensure compliance with requirements
> imposed by the IRS, please be advised that any U.S. federal tax advice
> contained in this communication (including any attachments) is not intended
> or written to be used or relied upon, and cannot be used or relied upon,
> for the purpose of (i) avoiding penalties under the Internal Revenue Code,
> or (ii) promoting, marketing or recommending to another party any
> transaction or matter addressed herein.
>
>
> On Thu, Oct 13, 2016 at 4:21 PM, Holly Roark hollyroark22@gmail.com
> [cdcbaa] cdcbaa@yahoogroups.com
> > wrote:
>
>>
>>
>> Do you have the DIP deposit income directly into cash collateral DIP
>> accounts and then move to operating once the cash collateral motion is
>> approved? What if you have 2 secured lenders? Do you open 2 cash
>> collateral accounts? What I'm asking is: as a practical matter, how does
>> DIP manage the accounts as cash comes in? Should all deposits hit the
>> senior secured lender DIP account first? What about after cash collateral
>> motion is granted?
>>
>> --
>> Holly Roark
>> Certified Bankruptcy Specialist*
>> *and Sports Lawyer*
>> holly@roarklawoffices.com
>> **primary
>> email address**
>> www.roarklawoffices.com
>> *Central District of California & District of Idaho* - Consumer
>> Bankruptcy Attorney
>> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
>> T (310) 553-2600; F (310) 553-2601
>>
>> *By State Bar of California Board of Legal Specialization
>>
>>
>>
>>
>
>
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
What if there's no property? What if the 2lenders have a UCC-1.? When the debtor generates receivables (by hauling crude oil each day),lateral is?I thought cash collateral means they have a lien on cash and receivables, not only that they own a realproperty that is generating income.On Thursday, October 13, 2016, Michael Avanesian michael@avanesianlaw.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
One cash collateral account per property. When cash is deposited, it should be depositeddirectly into the cc account.Once the cc motion is approved, it will be pursuant to a budget. The funds should be spent in accordance with the budget. I have requested a budget where senior secured lender is paid x, junior secured is paid y, and the rest is paid to my client as a management fee. The "rest" would then be moved from the cc account to the general account. All in the motion and in the budget.
The post was migrated from Yahoo.
On Thursday, October 13, 2016, Michael Avanesian michael@avanesianlaw.com
[cdcbaa] wrote:
>
>
> One cash collateral account per property. When cash is deposited, it
> should be deposited directly into the cc account.
>
> Once the cc motion is approved, it will be pursuant to a budget. The funds
> should be spent in accordance with the budget. I have requested a budget
> where senior secured lender is paid x, junior secured is paid y, and the
> rest is paid to my client as a management fee. The "rest" would then be
> moved from the cc account to the general account. All in the motion and in
> the budget.
>
>
> Sincerely,
>
> *Michael Avanesian *
>
> *[image: avanesian-law-logo-modern]*
>
> 801 N. Brand Blvd., Suite #1130
> Glendale, CA 91203
>
> Tel: (818) 276-2477 | (818) 208-4550
>
> *Confidentiality**: *This electronic transmission and its contents are
> legally privileged and confidential information and intended solely for the
> use of the addressee. If the reader of this message is not the intended
> recipient, you are hereby notified that any dissemination, distribution,
> copying or other use of this message and its contents is strictly
> prohibited. If you have received this transmission in error, please reply
> to us immediately and delete this message from your directory.
>
>
> *IRS Circular 230 Disclosure:* To ensure compliance with requirements
> imposed by the IRS, please be advised that any U.S. federal tax advice
> contained in this communication (including any attachments) is not intended
> or written to be used or relied upon, and cannot be used or relied upon,
> for the purpose of (i) avoiding penalties under the Internal Revenue Code,
> or (ii) promoting, marketing or recommending to another party any
> transaction or matter addressed herein.
>
>
> On Thu, Oct 13, 2016 at 4:21 PM, Holly Roark hollyroark22@gmail.com
> [cdcbaa] cdcbaa@yahoogroups.com
> > wrote:
>
>>
>>
>> Do you have the DIP deposit income directly into cash collateral DIP
>> accounts and then move to operating once the cash collateral motion is
>> approved? What if you have 2 secured lenders? Do you open 2 cash
>> collateral accounts? What I'm asking is: as a practical matter, how does
>> DIP manage the accounts as cash comes in? Should all deposits hit the
>> senior secured lender DIP account first? What about after cash collateral
>> motion is granted?
>>
>> --
>> Holly Roark
>> Certified Bankruptcy Specialist*
>> *and Sports Lawyer*
>> holly@roarklawoffices.com
>> **primary
>> email address**
>> www.roarklawoffices.com
>> *Central District of California & District of Idaho* - Consumer
>> Bankruptcy Attorney
>> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
>> T (310) 553-2600; F (310) 553-2601
>>
>> *By State Bar of California Board of Legal Specialization
>>
>>
>>
>>
>
>
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
On Thursday, October 13, 2016, Michael Avanesian michael@avanesianlaw.com [cdcbaa] <
One cash collateral account per property. When cash is deposited, it should be depositeddirectly into the cc account.Once the cc motion is approved, it will be pursuant to a budget. The funds should be spent in accordance with the budget. I have requested a budget where senior secured lender is paid x, junior secured is paid y, and the rest is paid to my client as a management fee. The "rest" would then be moved from the cc account to the general account. All in the motion and in the budget.
The post was migrated from Yahoo.
One cash collateral account per property. When cash is deposited, it should
be deposited directly into the cc account.
Once the cc motion is approved, it will be pursuant to a budget. The funds
should be spent in accordance with the budget. I have requested a budget
where senior secured lender is paid x, junior secured is paid y, and the
rest is paid to my client as a management fee. The "rest" would then be
moved from the cc account to the general account. All in the motion and in
the budget.
Sincerely,
*Michael Avanesian *
*[image: avanesian-law-logo-modern]*
801 N. Brand Blvd., Suite #1130
Glendale, CA 91203
Tel: (818) 276-2477 | (818) 208-4550
*Confidentiality**: *This electronic transmission and its contents are
legally privileged and confidential information and intended solely for the
use of the addressee. If the reader of this message is not the intended
recipient, you are hereby notified that any dissemination, distribution,
copying or other use of this message and its contents is strictly
prohibited. If you have received this transmission in error, please reply
to us immediately and delete this message from your directory.
*IRS Circular 230 Disclosure:* To ensure compliance with requirements
imposed by the IRS, please be advised that any U.S. federal tax advice
contained in this communication (including any attachments) is not intended
or written to be used or relied upon, and cannot be used or relied upon,
for the purpose of (i) avoiding penalties under the Internal Revenue Code,
or (ii) promoting, marketing or recommending to another party any
transaction or matter addressed herein.
On Thu, Oct 13, 2016 at 4:21 PM, Holly Roark hollyroark22@gmail.com
[cdcbaa] wrote:
>
>
> Do you have the DIP deposit income directly into cash collateral DIP
> accounts and then move to operating once the cash collateral motion is
> approved? What if you have 2 secured lenders? Do you open 2 cash
> collateral accounts? What I'm asking is: as a practical matter, how does
> DIP manage the accounts as cash comes in? Should all deposits hit the
> senior secured lender DIP account first? What about after cash collateral
> motion is granted?
>
> --
> Holly Roark
> Certified Bankruptcy Specialist*
> *and Sports Lawyer*
> holly@roarklawoffices.com **primary email address**
> www.roarklawoffices.com
> *Central District of California & District of Idaho* - Consumer
> Bankruptcy Attorney
> 1875 Century Park East, Suite 600 Los Angeles, CA 90067
> T (310) 553-2600; F (310) 553-2601
>
> *By State Bar of California Board of Legal Specialization
>
>
>
>
>
One cash collateral account per property. When cash is deposited, it should be depositeddirectly into the cc account.Once the cc motion is approved, it will be pursuant to a budget. The funds should be spent in accordance with the budget. I have requested a budget where senior secured lender is paid x, junior secured is paid y, and the rest is paid to my client as a management fee. The "rest" would then be moved from the cc account to the general account. All in the motion and in the budget.Sincerely,Michael Avanesianfont-size:11pt">801 N. Brand Blvd., Suite #1130Glendale, CA 91203Tel: (818) 276-2477 | (818) 208-4550Confidentiality:This electronic transmission and its contents are legally privileged and confidential information and intended solely for the use of the addressee. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or other use of this message and its contents is strictly prohibited. If you have received this transmission in error, please reply to us immediately and delete this message from your directory.IRS Circular 230 Disclosure:To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
The post was migrated from Yahoo.
Do you have the DIP deposit income directly into cash collateral DIP
accounts and then move to operating once the cash collateral motion is
approved? What if you have 2 secured lenders? Do you open 2 cash
collateral accounts? What I'm asking is: as a practical matter, how does
DIP manage the accounts as cash comes in? Should all deposits hit the
senior secured lender DIP account first? What about after cash collateral
motion is granted?
Holly Roark
Certified Bankruptcy Specialist*
*and Sports Lawyer*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
*Central District of California & District of Idaho* - Consumer Bankruptcy
Attorney
1875 Century Park East, Suite 600 Los Angeles, CA 90067
T (310) 553-2600; F (310) 553-2601
*By State Bar of California Board of Legal Specialization
Do you have theDIP deposit income directly into cash collateralDIP accounts and then move to operating once the cash collateral motion is approved? What if you have 2 secured lenders? Doyou open 2 cash collateral accounts?What I'm asking is:as a practical matter, how does DIP manage the accounts as cash comes in?Should all deposits hit the senior secured lender DIP account first? What about after cash collateral motion is granted?-- Holly RoarkCertified Bankruptcy Specialist*and Sports Lawyer
The post was migrated from Yahoo.